The Central Bank of Nigeria (CBN) has announced new directives for Payment Service Providers (PSPs).
Effective immediately, all transactions conducted through Point of Sale (PoS) terminals—whether at physical or electronic locations—must be routed through a CBN-approved Payment Terminal Service Aggregator (PTSA).
The new regulations, which were disclosed in a circular signed by Oladimeji Yisa Taiwo from the CBN’s Payments System Management Department, require PSPs to comply within 30 days. This change aims to bolster the monitoring capabilities of electronic transactions throughout Nigeria and to distribute the processing of these transactions among various entities rather than relying on a single central authority.
The circular read, “To achieve the objective of tracking electronic transactions in Nigeria, the Central Bank of Nigeria, in August 2011, granted a Payment Terminal Service Aggregator licence to Nigeria Interbank Settlement System Plc.
In furtherance of the above, the CBN hereby directs acquirers to route all transactions from PoS terminals at merchant and agent locations, whether on physical or electronic PoS terminals, through any CBN-licensed Payment Terminal Service Aggregator.”
“PTSAs are required to send PoS transactions to only processors certified by the relevant Payment Scheme, nominated by the Acquirer, and licensed by the CBN.”
This directive comes on the heels of the recent deadline for PoS agents to register their businesses with the Corporate Affairs Commission (CAC). The CAC has taken a firm stance against non-compliant businesses, including shutting down PoS operations that failed to meet registration requirements.
The new rules address ongoing concerns about fraud related to PoS terminals, which were highlighted by a recent report from Nigeria Interbank Settlement System Plc.
According to the report, PoS terminals were involved in 26.37% of fraud incidents reported in 2023.
